US Stock Market Overview – Stocks Slide as Impeachment Inquiry Kicks InMarkets focus on trade and impeachment
US stocks moved lower on Thursday as the Whistle Blower complaint seemed to capture the attention of the political news media. All eyes were on the House of Representatives today as they began their impeachment inquiry. US business investment contracted but GDP remained unchanged as the US consumer continues to buoy the economy. Jobless claims came in slightly weaker than expected. Volatility edged higher and the VIX volatility index remains buoyed as it now seems clear that an impeachment investigation will move forward. Most sectors were lower, lead down by energy which dropped 1.2%. Real-estate bucked the trend
US Business Investment Contracted
US GDP came in as expected rising 2% in the Q2, according to the Commerce Department. US business investment contracted more sharply that previously estimated in the second quarter and corporate profit growth was tepid, casting a shadow on the economy. Business investment declined at a 1.0% annualized rate last quarter, the government said in its third reading of second-quarter GDP on Thursday. That was the steepest decline since the fourth quarter of 2015. Business investment was previously estimated to have declined at a 0.6% pace. It was pulled down by an 11.1% pace of decline in spending on structures, which reflected drops in the categories of commercial and healthcare, and mining exploration, shafts and wells.
Jobless Claims Edged Higher
The Labor Department reported that jobless claims increased 3,000 to 213,000 for the week ended September 21. Data for the prior week was revised to show 2,000 more applications received than previously reported. Expectations had forecast claims increasing to 212,00 in the latest week. The Labor Department said only claims for Puerto Rico were estimated last week.